The Government has agreed to draft legislation that will see employees keep all of their tips.
The new laws would mean tips couldn't be used to top up base wages and a fair system of distribution must be in place.
Tánaiste Leo Varadkar says he doesn't believe the withholding of tips is widespread but says it is done by some employers.
Leo Varadkar says he doesn't believe there's widespread incidence of employers not paying tips but it is happening. Hopes to have the new laws in by next year
— Seán Defoe (@SeanDefoe) October 27, 2021
The Government has also agreed to draft rules meaning time spent on the Pandemic Unemployment Payment will count towards an accrued redundancy package for people let go from their jobs.
Speaking at the announcement that this legislation would be drafted, Tánaiste Leo Varadkar said, "This new law will, for the first time, give workers legal protections over tips.
"It will mean that any tips received cannot be counted towards an employee’s basic pay, they must be counted as additional and separate.
“I know many people are sometimes unsure how or if tips and service charges are distributed when paying for a meal, for example, especially when paying by card or phone. Once this law is enacted, all employers will be required to show clearly how tips and service charges are dealt with in a business. This will provide clarity for both customers and staff.
“Most establishments already treat their employees fairly with regard to tips, so for many it will mean no change other than having to display their policy clearly.